Penalty under Central Excise Rules upheld as a factual finding, with no substantial question of law arising

The Tribunal deleted penalty under Rule 209A of the Central Excise Rules, 1944 after finding on the evidence that no basis existed for imposing it. The High Court found that the challenge did not displace those factual findings and no substantial question of law arose from the Tribunal's order under Section 35G of the Central Excise Act, 1944. As a result, the deletion of penalty was left undisturbed and the appeal failed.

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Issues: Whether the Tribunal was justified in deleting the penalty imposed under Rule 209A of the Central Excise Rules, 1944 and whether any substantial question of law arose from that decision.

Analysis: The Tribunal had examined the evidence and recorded a factual conclusion that no reason existed for imposing penalty under Rule 209A. The challenge before the Court did not dislodge those factual findings. In the absence of a legal issue arising from the Tribunal's order, the appeal did not present a substantial question of law for consideration under Section 35G of the Central Excise Act, 1944.

Conclusion: The deletion of the penalty under Rule 209A was not interfered with and the appeal failed.

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